[Click eStock] "Doosan Bobcat Earnings Recovery Delayed... Target Price Down 28%"

Hana Securities evaluated on the 29th that concerns are growing as the earnings recovery of Doosan Bobcat is delayed. The investment opinion 'Buy' was maintained, but the target price was lowered by 28% from the previous to 57,000 KRW.

Researcher Yoo Jae-sun of Hana Securities stated, "Q3 sales decreased by 24.2% to 1.8 trillion KRW, and operating profit sharply dropped by 57.3% to 100 billion KRW," adding, "This fell short of market consensus."

Researcher Yoo explained, "While demand recovery expected in the second half has been delayed, ahead of the U.S. presidential election in November, demand decreased due to policy uncertainties such as infrastructure investment and reshoring, and inventory adjustments proceeded simultaneously," adding, "Some uncertainties may be resolved after the election, but inventory adjustments are likely to continue in Q4 as well."

In particular, Researcher Yoo pointed out that recent corporate governance restructuring is acting as a negative factor, and concerns are growing as the earnings recovery expected in the second half is also somewhat delayed. He analyzed, "In terms of year-over-year growth rate, the full-year 2024 earnings may hit the bottom, but on a quarterly basis, it is still difficult to predict a clear recovery point," adding, "It is necessary to confirm the specific timing of earnings recovery."

He added, "Given that the main business base is essentially North America, the valuation gap with U.S. competitors will also be a key point supporting the stock price floor."

This content was produced with the assistance of AI translation services.